Canada’s gross domestic product expanded for the first time in three months in November on a manufacturing and wholesaling rebound, a sign the economy is shaking off the damage from a drop in commodity prices.

Output expanded 0.3 per cent to an annualized $1.65 trillion, Statistics Canada said Friday in Ottawa, matching the median forecast in a Bloomberg economist survey. Production had stalled in October and shrank 0.5 per cent in September.

Wholesaling rose by 1.3 per cent, the biggest gain in a year, and retail sales increased 1.2 per cent. Factory production rose 0.4 per cent with the first gain in three months led by durable goods such as wood and electrical products.

The expansion backs Bank of Canada Governor Stephen Poloz’s view that industries outside of the energy sector will revive the economy’s momentum after output shrank in the first half of the year. The November expansion breaks a spell of negative developments, including the decline of Canada’s dollar to the lowest since 2003 and warnings about overstretched housing markets.

A renewed slump in prices for oil and other commodities stalled the economy in the fourth quarter and will delay its return to full capacity until the end of next year, Poloz said Jan. 20. The Governor also said he decided against cutting interest rates to record lows on signs of momentum in other parts of the economy, in particular non-energy, exchange-rate sensitive exports, and also because the government pledged to offer a program of deficit spending in the next budget.

Today’s report even showed some good news for the energy industry. Oil and gas extraction grew 2.1 per cent in November. Non-conventional production rose 3.4 per cent, part of a recovery from September’s 10.6 per cent drop triggered by production shutdowns.

Growth was held back as the construction industry’s output stalled, and the finance and insurance industry shrank a fourth straight month.

Transportation and warehousing rose along with wholesaling and manufacturing with a 0.8 per cent gain in November, a sign manufacturers are beginning to reap the full benefit of the Canadian dollar’s 11 per cent decline over the last year and increasing demand from the U.S.